TMFE vs VOO
Motley Fool Capital Efficiency 100 Index ETF vs Vanguard S&P 500 ETF
Which is better, TMFE or VOO?
Large Cap Growth against Large Cap Blend.
VOO has a lower expense ratio. TMFE led over the full window, VOO over 1Y. The two have moved almost in lockstep, correlation 0.97. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 47.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TMFE | VOO |
|---|---|---|
| Expense Ratio | 0.50% | 0.03%Best |
| AUM | $77M | $997.4B |
| Dividend Yield | 0.18% | 1.04% |
| Holdings | 103 | 509 |
| Volatility (annualized) | 20.5% | 17.6%Best |
| Max Drawdown | -31.1% | -24.5%Best |
| $10,000 over 2.9 years | $13,941Best | $13,212 |
| Top 10 Weight | 47.0% | 37.6%Best |
| Fund Family | Motley Fool Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Dec 30, 2021 | Sep 7, 2010 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized).
The two price series end 656 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. TMFE has data through Nov 29, 2024 and VOO through Sep 16, 2026.
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Dec 31, 2021 to Nov 29, 2024 (2.9 years).
Risk: Volatility and Drawdowns
TMFE has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 17.6% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -31.1% for TMFE and -24.5% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TMFE charges 0.50% per year while VOO charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, TMFE currently yields 0.18% against 1.04% for VOO.
Holdings Overlap
93.7% of TMFE's money is in holdings VOO also owns. 32.0% of VOO's money is in holdings TMFE also owns.
Most of TMFE is already inside VOO. Owning both mostly buys the same companies twice.
60 positions in common, counted across the 100 positions we hold weights for in TMFE and 494 in VOO, against full books of 103 and 509.
What only one of them owns
Measured across the 100 and 494 positions we hold weights for.
VOO holds 427 positions TMFE does not, 67.2% of the fund.
Largest: MSFT 5.36%, GOOGL 3.24%, AVGO 2.86%, JPM 1.46%, BRK.B 1.46%
Top Shared Holdings
| Stock | Weight in TMFE | Weight in VOO | Difference |
|---|---|---|---|
| NVDANvidia Corp | 4.89% | 7.55% | 2.66% |
| AAPLApple, Inc | 4.84% | 7.05% | 2.21% |
| AMZNAmazon.Com Inc | 4.97% | 4.13% | 0.84% |
| GOOGAlphabet Inc | 4.32% | 2.62% | 1.70% |
| METAMeta Platforms Inc | 4.60% | 1.90% | 2.70% |
| MAMastercard Inc | 5.58% | 0.72% | 4.86% |
| VVisa Inc Class A | 5.18% | 0.93% | 4.25% |
| COSTCostco Wholesale Corp. | 4.53% | 0.66% | 3.87% |
| WMTWalmart, Inc. | 4.05% | 0.76% | 3.29% |
| NFLXNetflix, Inc. | 4.09% | 0.47% | 3.62% |
93.7% of TMFE is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, TMFE or VOO?
TMFE has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option, by $47 a year on a $10,000 investment.
Which is riskier, TMFE or VOO?
TMFE has been the more volatile fund at 20.5% annualized versus 17.6% for VOO. Worst drawdown: TMFE -31.1% vs VOO -24.5%.
Should I hold both TMFE and VOO?
TMFE and VOO have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between TMFE and VOO?
93.7% of TMFE's money is in holdings VOO also owns. 32.0% of VOO's is in holdings TMFE also owns. They hold 60 positions in common, counted across the 100 positions we hold weights for in TMFE and 494 in VOO.
Which pays a higher dividend, TMFE or VOO?
TMFE yields 0.18% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.
Is VOO better than TMFE?
VOO has a lower expense ratio. TMFE led over the full window, VOO over 1Y. The two have moved almost in lockstep, correlation 0.97. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 47.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.